5 Reasons to Outsource to a 3PL

5 Reasons to Outsource to a 3PL

Business is booming for today’s eCommerce businesses. In fact, the market is expected to skyrocket by $10.87 trillion between 2021 and 2025. That’s a 29 percent increase!

While this growth is excellent news for online retailers, it also comes with some obstacles—especially for smaller and mid-sized eCommerce and fulfilled by merchant (FBM) operations. In many cases, partnering with a third-party logistics (3PL) company can help businesses of all sizes turn those obstacles into opportunities.

Wondering whether outsourcing to a 3PL is right for your eCommerce or FBM company? Here’s a closer look at five reasons to work with a 3PL.

1. Dedicated focus

The ability to focus on your core competencies is vital to growing your business. Unfortunately, managing non-core but critical logistics often directs internal resources away from other mission-critical priorities.

Enter 3PL solutions.

By handling logistics—including sorting, assembly, kitting, cartonization, warehouse distribution, and fulfillment—a 3PL partner will free you and your employees up to focus on what you do best while also optimizing your warehouse operations.

2. Improved efficiency

Speaking of optimizing warehouse operations, this is a major benefit of outsourcing to a 3PL. While most businesses may view warehouse management as a necessary evil for most businesses, it’s the topmost consideration for 3PLs.

3PLs are laser-focused on deploying the latest data-backed logistical expertise and strategies to ensure accuracy, speed, inventory optimization, and more—while also rigorously qc’ing the process.

The result? Your customers will get the right products faster.

3. Enhanced flexibility, scalability, and growth potential

Keeping up with increasing demand is essential to business growth. However, markets fluctuate. 3PLs have unparalleled flexibility and scalability that allow you to adjust your supply and distribution resources on the fly in response to shifting demand.

Expanding into a new market? 3PLs offer access to new markets without the excess investment involved in warehousing, equipment, and labor.

4. Reduced costs

Between eliminating warehouse costs (and warehouse labor) and the efficiency gains you’ll reap, lower costs are a major benefit of outsourcing to a 3PL.

Furthermore, utilizing a warehouse in a tax-free state like New Hampshire has additional financial benefits, as does choosing one in a central East Coast location.

5. Greater customer satisfaction

Improved services, fast deliveries, and better brand reliability all add up to more satisfied customers. And we all know that satisfied customers are repeat customers—and their value cannot be overstated.

While new customers are often viewed as the brass ring of business success, the truth is that retained customers are equally if not more critical to sustaining business growth for the simple reason that customer retention is much less expensive than customer acquisition.

Put the Benefits of Partnering with a 3PL to Work for Your Business

If you’ve been thinking about outsourcing your eCommerce business’s warehousing option to a 3PL, these five reasons are compelling ones. But all 3PLs aren’t created equal.

At American Warehouse, Inc., we bring extensive third-party warehousing and product management experience to the table, along with an above-and-beyond commitment to customer service to customizing just-right solutions for our clients and a prime location just north of Boston.

To talk to a member of our team about how we can help your eCommerce business harness the power of 3PL to reach your goals, contact us at American Warehouse, Inc. today.